The US Treasury Department and the Internal Revenue Service have postponed consideration of a bill requiring cryptocurrency brokers to collect customer information.
Under the bill, cryptocurrency brokers processing digital asset transactions worth more than $10,000 must report them to the Internal Revenue Service, providing personal information about the sender, including the name, date of birth, and social security number.
The requirements were to go into effect in January 2023, and companies were supposed to start submitting data to the IRS from 2024. However, the decision to force cryptocurrency brokers to collect information about certain cryptocurrency transactions has been shelved.
By words Head of Policy at the Blockchain Association Jake Chervinsky, the delay will benefit both the bill and the industry as a whole. He is sure that this is not a delay, but, on the contrary, an approach to a denouement, since the bill needs additional consideration.
Many executives in the industry say companies need more time to prepare and update their software before the new rules are implemented. Some even argue that the preparation will take at least two years.
“Given the wide range of tax regulations, the uncertainty in their implementation, and the short timeframe before these rules go into effect, we are calling on the Treasury to extend the compliance deadline,” Chervinsky said.
Earlier, the US Department of the Treasury said that the country needs to actively seek to regulate the crypto industry, given the active digitalization of the financial sector.
Source: Bits
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